Obama’s smartness and dumbness

In September, 2011, Obama proposed another job plan that involves $447 billion. This time he didn’t just spend the money but he cares about where to get the funds. He was going to eliminating $467 billion in tax breaks for rich Americans and corporations. As a presidend for three years he did something smarter finally. I don’t mean that his job plan is smart; I just believe that he found his place to deal with Republicans and make himself win either way.

Congressional Democrats plan to raise payroll taxes on those making more than $250,000 a year . If they win they get the funds for their job plan and gain good reputations. If they lost because of the resistance from the Republicans they still win. They prove to the world that Republicans represent only the rich people and do not deserve to be trusted by the majority. In that way Obama will win in the coming presidential election. It is said his approval rating got a small lift following his jobs plan. It went up from 45% to 47%. When Republicans accuse him of creating conflicts between classes he answered them that increasing rich people’s tax is just mathematics. In some way he admitted that he lacked mathematics concepts in the last three years because he just spent money and don’t care about where to get the funds.

If he uses more mathematics calculations he should also care about how to maximize the results of the job plans. Make them not just spend money but bring in profit for the government at the same time. Right now he still looks dumb because of his jobs plan. In his last job plan he simply gave out a bail out. This time he made some investments. However the investments are without profit or return. In some way they are still some kind of spending.

Below are the components of his proposal:
Spend $175 billion for a one-year extension and expansion of employee payroll tax. This spending creates no profit for the government but only gives employee little bit more bring home income in certain time of pereiod.

Spend $65 billion toward small businesses that hire more workers and spend $35 billion to save jobs for teachers, firefighters and police officers. He doesn’t care if those businesses are actually hiring more workers. He can’t guarantee that after $100 billion is spent those job positions will still be there.

He will spend $30 billion to modernize schools and community colleges and spend $50 billion to invest in highways, transit, rail and airports. Modernizing those facilities just creates jobs but can’t create good profits. Cars running on highways in better condition will bring up no aditional profit for the government. Better classroom environment doesn’t create more money either.

Spend $15 billion to rehabilitate vacant and foreclosed homes and $49 billion for a one-year extension of long term unemployment benefits. Only some people get help from these two components in a certain time period and its results are similar to a bail out.

On the whole after $447 billion is gone the jobs it created will not be able to be maintained because it creates no profit in the process. We can’t used the profit to continually run the project. That is why I said Obama is dumb. If he doesn’t realize that, his second jobs plan will be a failure just like his first jobs plan. His approval rating can’t be maintained high in the next presidential election season.

I had an opinion mentioned in my previous articles. Obama should investment in the projects that can bring in profit for the government such as building up government’s own properties to collect rents. Using these properties we can encourage earlier retirement and leave job positions open for the youths. We can provide free shelters instead of releasing social security checks or public assistant checks every month. In that way the governement can save money in the long term.

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